Long-Run Equilibrium in a Bertrand Type Oligopoly Model with Cobb-Douglas Demand and Production

8 Pages Posted: 28 Jan 2010 Last revised: 25 Aug 2010

William C. Kolberg

Ithaca College

Date Written: January 27, 2010

Abstract

This paper explores the character of long-run equilibrium in an oligopoly model with Cobb-Douglas production and demand. The model is a Bertrand type model in that firms choose production, but the product may be differentiated as well as homogeneous in nature. The long run equilibrium explored here does not permit entry or exit, so in that sense it is considered oligopoly.

Keywords: Price Competition, Oligopoly, Bertrand, Long-Run Equilibrium

JEL Classification: D43, L13

Suggested Citation

Kolberg, William C., Long-Run Equilibrium in a Bertrand Type Oligopoly Model with Cobb-Douglas Demand and Production (January 27, 2010). Available at SSRN: https://ssrn.com/abstract=1543380 or http://dx.doi.org/10.2139/ssrn.1543380

William C. Kolberg (Contact Author)

Ithaca College ( email )

Department of Economics
430 Muller Faculty Center
Ithaca, NY 14850
United States
607-274-3609 (Phone)

Paper statistics

Downloads
43
Abstract Views
603